Managing Director Liability (Compliance)
Section 38 BSIG, Section 43 GmbHG, personal liability risks
Practitioner's note: This article is practice-oriented compliance documentation, not legal advice. We are a compliance specialist, not a law firm. For legally binding information please consult a licensed lawyer.
TL;DR
Managing director liability in compliance refers to the personal liability of the managing director for inadequate compliance structures. NIS2 / Section 38 BSIG is the principal exposure in 2026.
What is Managing Director Liability (Compliance)?
Protective strategies:
- D&O insurance (EUR 1-5 million)
- Appoint a compliance officer
- Compliance Kit documentation
- Document training
- Regular audits
Practical example
An NIS2 incident without documented risk management: liability under Section 38 BSIG is conceivable. In the case of 'gross breach of duty': personal liability of up to EUR 2 million.
Frequently asked questions
Is it insurable?
D&O yes, but NOT in cases of intent, gross negligence, or fines.
What does D&O cost?
EUR 1,500-15,000 per year, depending on size and sector.